These days, effective money management is more important than ever. Although your income might be steady today, there’s no telling what will happen tomorrow – and if times get even tougher, you want to be prepared. Improving your money-saving techniques is useful in two ways: you can spend more money in vital areas, and you can save more for tighter times in the future. (Financial experts recommend putting away as much as six months to a year’s worth of expenses in case of bad times; while this may not be possible for everyone, it’s a goal to strive for.)

Our new quiz can help you evaluate your spending habits. If the results don’t turn out the way you want them to, read on for tips to help your family become recession-proof.

1. Re-Evalutate Your Needs

Realistically dividing your expenses into “needs” and “wants” can be more difficult than it sounds. For example: cutting back too much in the entertainment category might seem like a good idea, until you find yourself sitting home every Friday night, bored and depressed. Proper budgeting is all about balance.

Chances are, there are ways to keep doing some of the same things you’re doing now – but cheaper. If you rent a lot of movies from retail places like Blockbuster, consider switching to a Netflix subscription. Promptly returning DVDs on an unlimited plan (starting at just $8.99 per month) can save a lot of money. If you only rent movies occasionally, check to see if any of your local stores have a DVD rental machine like Red Box. It usually costs only $1 per day, so if the store is convenient to your commute, it makes more sense than traditional rental stores.

What about travel? It can be expensive, but there are ways to cut back. If you can, take trips to areas where friends and relatives will be willing to put you up for free. Travel costs can be reduced by taking trains, discount airlines, or even driving. (Until gas prices go up again, anyway!) Read some of the many guides to tourism on a budget to learn moneysaving techniques.

And what about food? Cutting back on restaurant visits is relatively easy, but if you’re like many people, you spend a lot more money at the grocery store than you need to. If you’re spending more than $50 per person per week, it’s time to consider some serious cutbacks. The principles are simple: avoid prepared foods in favor of ingredients that can be used to easily assemble your own version.

2. Comparison Shop

So, you already compare prices at your favorite stores before you make a major purchase. However, if you’re not already familiar with the prices on your most commonly-purchased items at different places, take the time to make sure you’re not wasting money. Think the prices can’t vary that much? Think again. Some of the items you buy every week could be substantially cheaper at another nearby store. It’s worth taking a look.

But comparison-shopping isn’t just for groceries. If you’re considering a major purchase like a car or home, remember to investigate interest rates before taking out a loan. While your credit history will have an effect on the kinds of loans you might be offered, rates also vary from institution to institution. Check with your own bank first, since they may have a discount for setting up automatic monthly payments from your checking account. Remember to investigate any local credit unions you might be qualified for, since they can have better rates than some banks. For an auto loan, obtain a few offers before visiting the dealership and show them the best one; chances are, they’ll match it.

There’s a general principle at work here: never, ever settle for the first option without checking out the others.

3. Stay Afloat in the Job Market

Whether your job is secure or not, you should be prepared for the worst. You might not think of yourself as one of those self-starting professionals who uses words like “marketable skills” and “networking,” but both of these terms could become very important to you in the future. Whatever your unique abilities, you can be sure that someone else out there might need you – the trick is to find those six degrees that connect you to potential employers. That’s what networking is all about. You can find some of your best jobs through friends, acquaintances, and other business contacts. Making sure that the people around you are familiar with your skills and abilities is a great start. If you suspect that handing out fistfulls of business cards at every social occasion will turn people off, you’re right; there’s no need to make yourself seem desperate. But if people like you and trust your abilities, they’ll mention your name.

It’s also important to be flexible. Technology is constantly changing, and business changes with it. You’ll notice that many of the employees who’ve stayed with a company the longest aren’t doing anything remotely related to their original job titles. They’re skilled in many areas and willing to learn, which makes them hard to let go. Before you start using words like “can’t” or “don’t” with regards to your professional skills, stop and think. Now might be a good time to invest in educating (or re-educating) yourself in a trade.

4. Invest in the Future

Now more than ever, it’s important to look ahead. That doesn’t mean saving every spare penny for some “rainy day” that never comes, but it does mean evaluating your choices carefully. If you have the money to spend on a kitchen remodel, then do it – but make sure you’re not spending more than the remodel will eventually be worth to you if your house goes on the market. Apply this principle to everything you do.

If you’re still in school, take advantage of your education by getting a degree that will translate into high-paying, recession-proof jobs. Education, energy, health care, international business, and security are all considered relatively safe, even in hard times. Pursuing a degree in one of these areas might be the best decision in this economic climate. With more and more people getting college degrees, you can separate yourself from the herd by having a degree you can actually use.

A recession doesn’t mean you should be afraid to spend money. All you need to do is make sure your money is going into smart places.

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